There are many techniques described on the Internet, in books and in investing programs.
Yet, nothing beats a technique that ensures that you really know the company to which you want to commit investment funds.
Search the web and you'll find tens of thousands of sites that purport to know the secret of gaining wealth through stock market investing.
Yet, if these techniques were as good as they claim to be, every one of us would be wealthy.
This just isn't so.
Many of the techniques involve chart performance; others new-low comparisons; some even key on stock splits.
But, when all is said and done, most of these "schemes" don't really allow you to know the company.
Some small investment clubs work hard at knowing the company well through extensive, focused research.
And, so do some stock brokerage firms who have analysts who key on particular stocks and/or industries.
Yet, there is really only way to know a company and that is to use its products, see how business is going at its brick and mortar stores (if they have these), look around you to see who else might be using the product and experiencing customer service.
What's nice about this approach is that it is something that you might be doing anyway.
Consider your cell phone company, for example.
Does it provide good service? Does it address your concerns (e.
g.
, billing, voice mail issues) or does it ignore them or fail to remedy a problem? Do you want to stay with the company or flip to another as your contract renewal date approaches? Airlines are another customer service industry that you likely experience several times a year.
How much does your airline charge you for making changes to reservations? How much of a hassle is it to make the change? Does the ticket counter agent go out of his/her way to accommodate you or show you a shortcut or workaround to a problem? Has the airline devalued its frequent flyer miles in the past year? Answers to these questions will tell a lot about how the airline is working to retain and gain a client base.
Airlines that demonstrate customer caring are going to be the most likely to grow, or at least survive tough times.
Your car dealership, automobile service center, your bank and even the grocery store at which you shop all allow you to test drive the company.
This shows you a lot about the company and its desire to succeed and excel.
Next consider your local cable company.
In most markets, this operates as a monopoly.
But, in your community, you at least have a chance to see how it works.
First, consider their service to you.
How did they do? Were they proactive in solving issues or did a resolution require multiple calls with an escalation to the supervisory level? Then, visit one of their service centers.
See how many people are returning their "boxes.
" Listen to their discussions to learn if the return is due to a mechanical or technical issue (replacement mode) or because they are switching to satellite or DSL service.
Recently, while at a Comcast service center, I noted that the number of people returning boxes due to service issues was four times what it was for technical replacements.
Women's clothing and department stores provide another vehicle for seeing how traffic is holding up, especially in our current "down" economy.
Just pay a visit to stores like Chico's, Macy's, Sears and The Gap and you'll get a snapshot of what is happening.
Office supply stores and computer stores involve another opportunity to check out the scope of a business.
Years ago, I noticed that traffic had dropped off sharply at Radio Shack and the stock followed suit.
Radio Shack's recent stock price is half what it was five years ago! On the other hand, Apple, with a growing product line and busy, flashy stores (filled with helpful people) has soared 500 percent.
You can see the Apple influence by just looking around at all the iPhones and iPods.
Even at airports, there are many more Macs in evidence than there were years ago.
So, if you want to invest in a company, learn about the company firsthand through observation, visiting its stores and through use of its products.
You will be amazed at how this helps you really "own" a company, not just own its stock.
Yet, nothing beats a technique that ensures that you really know the company to which you want to commit investment funds.
Search the web and you'll find tens of thousands of sites that purport to know the secret of gaining wealth through stock market investing.
Yet, if these techniques were as good as they claim to be, every one of us would be wealthy.
This just isn't so.
Many of the techniques involve chart performance; others new-low comparisons; some even key on stock splits.
But, when all is said and done, most of these "schemes" don't really allow you to know the company.
Some small investment clubs work hard at knowing the company well through extensive, focused research.
And, so do some stock brokerage firms who have analysts who key on particular stocks and/or industries.
Yet, there is really only way to know a company and that is to use its products, see how business is going at its brick and mortar stores (if they have these), look around you to see who else might be using the product and experiencing customer service.
What's nice about this approach is that it is something that you might be doing anyway.
Consider your cell phone company, for example.
Does it provide good service? Does it address your concerns (e.
g.
, billing, voice mail issues) or does it ignore them or fail to remedy a problem? Do you want to stay with the company or flip to another as your contract renewal date approaches? Airlines are another customer service industry that you likely experience several times a year.
How much does your airline charge you for making changes to reservations? How much of a hassle is it to make the change? Does the ticket counter agent go out of his/her way to accommodate you or show you a shortcut or workaround to a problem? Has the airline devalued its frequent flyer miles in the past year? Answers to these questions will tell a lot about how the airline is working to retain and gain a client base.
Airlines that demonstrate customer caring are going to be the most likely to grow, or at least survive tough times.
Your car dealership, automobile service center, your bank and even the grocery store at which you shop all allow you to test drive the company.
This shows you a lot about the company and its desire to succeed and excel.
Next consider your local cable company.
In most markets, this operates as a monopoly.
But, in your community, you at least have a chance to see how it works.
First, consider their service to you.
How did they do? Were they proactive in solving issues or did a resolution require multiple calls with an escalation to the supervisory level? Then, visit one of their service centers.
See how many people are returning their "boxes.
" Listen to their discussions to learn if the return is due to a mechanical or technical issue (replacement mode) or because they are switching to satellite or DSL service.
Recently, while at a Comcast service center, I noted that the number of people returning boxes due to service issues was four times what it was for technical replacements.
Women's clothing and department stores provide another vehicle for seeing how traffic is holding up, especially in our current "down" economy.
Just pay a visit to stores like Chico's, Macy's, Sears and The Gap and you'll get a snapshot of what is happening.
Office supply stores and computer stores involve another opportunity to check out the scope of a business.
Years ago, I noticed that traffic had dropped off sharply at Radio Shack and the stock followed suit.
Radio Shack's recent stock price is half what it was five years ago! On the other hand, Apple, with a growing product line and busy, flashy stores (filled with helpful people) has soared 500 percent.
You can see the Apple influence by just looking around at all the iPhones and iPods.
Even at airports, there are many more Macs in evidence than there were years ago.
So, if you want to invest in a company, learn about the company firsthand through observation, visiting its stores and through use of its products.
You will be amazed at how this helps you really "own" a company, not just own its stock.
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